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5 Cards in this Set
- Front
- Back
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What makes retirements benefits complex in FS's |
Teaa -timescale=long -estimation prodedures (e.g for measuring thr value of liabs) -amounts=large -assumptions needed: due to high levels if uncertainty over long timescale
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Why has benefit plans become less popular |
Cost=uncertain Life expectancy =higher Interest rslates=lower Disappointing returns on investment-assets under performing compared to projections requiring additional firm contributions |
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G |
G |
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Current service cost |
The cost of providing pension benefits to employees for the current period Its influenced by actuarial assumptions |
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Interest cost |
Unwinding of the effect if discounting on the pension asset or liab If a pension is: -in an asset position: interest income is recognised -in a liab position: interest cost is recognised |
